As a self-employed individual or a member of a partnership, if you have been adversely affected by Coronavirus on or after 14 July 2020 you can use the Self-employed Income Support Scheme to claim a grant.
Applications for the initial grant have now closed, but a second grant is available to those who are eligible.
Applications for the second grant are now open.
This second grant will be made in a single payment and it will cover 70% of your average monthly trading profit for a three month period. This grant will be capped at a total of £6570.
If your business has been effected on or after 12th July 2020, you may be eligible for the second grant. HMRC will provide a date and you must make sure you make your claim from the date you are given.
You must make your claim for the second grant on or before 19 October 2020.
You can make a claim for the second grant if you're eligible, even if you did not make a claim for the first grant.
This scheme is being extended, find out more about the grant extension here.
How the grant works
If you receive the grant you can:
- continue to work
- start a new trade or take on other employment including voluntary work and duties as a military reservist.
It is important to bear in mind that this grant will be subject to Income Tax and Self-Employed National Insurance.
HMRC will decide if you are eligible for this grant, but you can find out more about how they will do this here:
Who can claim?
Any self-employed individual or member of a partnership can claim if they have been adversely affected by Coronavirus, but your business must have been affected on or after 14 July 2020.
All of the following must also apply:
- you traded in the tax year 2018 to 2019 and submitted your Self Assessment tax return on or before 23 April 2020 for that year
- you traded in the tax year 2019 to 2020
- you intend to continue to trade in the tax year 2020 to 2021
If you trade through a limited company, you will not be able to claim the grant.
Claiming Maternity Allowance will not affect your eligibility for the grant.
To be eligible to claim this grant, your trading profits must be no more than £50,000 and at least equal to your non-trading income. HMRC will first look at your 2018 to 2019 Self Assessment tax return. If you are not eligible based on this tax return, they will look back through your tax years 2016 to 2017, 2017 to 2018, and 2018 to 2019.
What do you need to claim the grant?
To claim the grant, you must have the following:
- Self Assessment Unique Taxpayer Reference (UTR) – if you do not have this find out how to get your lost UTR
- National Insurance number – if you do not have this find out how to get your lost National Insurance number
- Government Gateway user ID and password – if you do not have a user ID, you can create one when you make your claim
- UK bank details (only provide bank account details where a Bacs payment can be accepted) including:
- bank account number
- sort code
- name on the account
- your address linked to your bank account
Claims will be checked and if the claims are found to be dishonest or inaccurate, HMRC will take appropriate action to withhold or recover payments. This may include penalties for overpayments or receiving funds if you are not eligible.
What happens once you have claimed?
Once you claim has been checked by HMRC, funds will be paid into your bank account in 6 working days. You will receive an email from HMRC when the payment is on its way.
It is important to keep hold of any evidence that proves your business was adversely affected at the time you made the claim. If your business recovers after you have received the claim, your eligibility will not be affected.
We appreciate that this will be a stressful time but together we can try to make the claim as painless as possible. Although we are unable to make the claim on your behalf as agents, please do not hesitate to contact your usual partner for any assistance you may require.
You should contact HMRC if you receive any suspicious texts, calls or emails claiming to be from HMRC as this may be a scam.